Government Announces Tk 60 Billion Incentive Fund to Create 2.5 Million Jobs

The government has announced a Tk 60 billion incentive fund aimed at generating more than 2.5 million new jobs through support for agriculture, cottage and small industries, CMSMEs, and the revival of sick and closed industrial enterprises.

Finance and Planning Minister Amir Khasru Mahmud Chowdhury made the announcement while presenting the proposed national budget for the 2026–27 fiscal year in Parliament on Thursday.

According to the minister, the fund will be managed by the central bank under a refinancing mechanism with concessional lending terms. Of the total amount, Tk 41 billion will come from refinancing facilities, while Tk 19 billion will be provided from the Bangladesh Bank’s own resources.

The incentive package includes several targeted programs. Tk 20 billion has been allocated for reopening closed factories and supporting the service sector, Tk 10 billion for agriculture and rural economic activities, Tk 5 billion for the CMSME sector, Tk 3 billion for export diversification, and another Tk 3 billion to develop northern Bangladesh as an agricultural hub.

The government expects these initiatives to create more than 2.5 million direct and indirect employment opportunities across the country.

The finance minister said the government will provide a 6 percent interest subsidy on loans under the scheme, helping entrepreneurs access working capital and expand production activities. As a result, the effective borrowing cost for businesses will be less than half of prevailing market-based interest rates.

He noted that the measure would enhance industrial competitiveness, encourage fresh investment, and significantly increase credit flow to the private sector.

Describing the initiative as a major policy step, the minister said the fund reflects the government's commitment to boosting private-sector growth, expanding employment opportunities, and accelerating economic activity nationwide.